US Treasury Cuts Off MEXC Over $16B in Illicit Funds

What happened

FinCEN issued an order under section 9714(a) of the Combating Russian Money Laundering Act against MEXC Global, which Treasury calls one of the 20 largest crypto exchangers in the world. The order bars US financial institutions from any transmittal of funds to or from MEXC.

Treasury says MEXC facilitated at least $16 billion connected to sanctions evasion, cybercrime and other illicit activity, including nearly $1.5 billion linked to Russian sanctions evasion and about $1 billion in direct transactions with more than 40 Iranian crypto exchangers.

Why it matters

This is not a fine. It removes access to US dollar rails, which is one of the strongest tools Treasury has against a foreign exchange. Treasury Secretary Scott Bessent framed it as a binary choice: support the Iranian regime or keep access to the US financial system.

The order takes effect 30 days after publication in the Federal Register. After that, US banks cannot send or receive funds for MEXC. The allegations are Treasury's findings, not a court ruling.

FAQ

When does the FinCEN order against MEXC take effect?

30 days after it is published in the Federal Register. From then on, US financial institutions are barred from any transmittal of funds to or from MEXC Global.